Explanatory note

These Regulations amend the National Savings Bank Regulations 1972 (“the 1972 Regulations”) and the National Savings Bank (Investment Deposits)(Limits) Order 1977 (“the Order”).

The 1972 Regulations are amended so that some of those Regulations will not apply to an investment account of any description which is first made available after 10th July 2003 and for which terms and conditions are published by the Director of Savings. Instead, such an investment account will be governed both by the terms and conditions issued with the account and by any of the 1972 Regulations that still apply to the account.

The 1972 Regulations are also amended so as to make provision for the closing of ordinary accounts. An ordinary account may not be opened after 28th January 2004. Deposits into existing ordinary accounts will not be allowed after 31st July 2004 and no withdrawal will be allowed after that date unless it is to withdraw all the money in the account so as to close the account.

The 1972 Regulations are also amended so as to enable the trustees or treasurer of a charitable or other society to close an ordinary account after 28th January 2004 and transfer the amount held in that account to an investment account.

The Order is amended so that the limits imposed by it on the amount that may be held in an investment account will not apply to an investment account of any description which is first made available after 10th July 2003 and for which terms and conditions are published by the Director of Savings. Instead, the maximum that may be held in such an investment account will be set by the terms and conditions issued with the account.